MLO exam

In a federally related mortgage loan on a principal dwelling, which of the following parties has the right to rescind the transaction?A . Only the borrower who makes the most incomeB . Only the borrower with the majority interest in the transactionC . Only the person who will actually occupy...

How many continuing education hours must mortgage loan originators complete every year to renew their license?A . 3 hoursB . 8 hoursC . 16 hoursD . 20 hoursView AnswerAnswer: B Explanation: Mortgage loan originators (MLOs) are required to complete 8 hours of continuing education (CE) annually to maintain their license...

Non-qualified mortgages offer more options for borrowers who:A . are unemployed.B . are self-employed.C . have no down payment.D . are currently living with their parents.View AnswerAnswer: B Explanation: Non-qualified mortgages (Non-QM) are designed to help borrowers who do not meet the standard documentation or income verification requirements of traditional...

If an applicant provides a waiver for the requirement to receive their appraisal three business days prior to a loan's consummation and the transaction ends up not closing at all, a creditor must still provide a copy of the appraisal no later than how many days after the creditor determines...

Which of the following sources of funds is acceptable to utilize for down payments, closing costs or financial reserves?A . Virtual currency fundsB . Community second fundsC . Personal unsecured loansD . Foreign assets located outside of the U.S. or its territoriesView AnswerAnswer: B Explanation: Community second funds are an...

A mortgage loan originator (MLO) cannot be approved for licensure if the applicant has:A . been convicted of a felony within the past seven years.B . had an MLO license suspended in any governmental jurisdiction.C . taken and failed the SAFE MLO National Test three times within the last year.D...

Which of the following responses describes the required amount of flood insurance coverage?A . The original appraised value of the homeB . The outstanding principal balance of the loanC . The minimum amount of National Flood Insurance Program coverage availableD . The property value on file with the county property...

Offering or negotiating the terms of a loan includes which of the following actions?A . Providing general explanations or descriptions in response to a consumer's inquiryB . Making an underwriting decision about whether an applicant qualifies for a loanC . Presenting particular loan terms to an applicant verbally, in writing,...

Under the TILA-RESPA Integrated Disclosure rule (TRID), what is the minimum time period that must pass between a borrower's receipt of a Loan Estimate and the closing of a mortgage loan?A . 7 business daysB . 15 business daysC . 30 business daysD . 45 calendar daysView AnswerAnswer: A Explanation:...

Which of the following activities is a function of the Consumer Financial Protection Bureau (CFPB)? A. Regulating the federal funds rate at which money is lent to banks B. Regulating the number of mortgage loan originators in the mortgage industry C. Regulating mortgage lenders on their mortgage origination practices and...